U.S. spot Bitcoin ETFs are facing the most severe capital exodus of 2026. After six straight trading days with cumulative net outflows of $1.55 billion, year-to-date net inflows have slumped to a mere $536 million. If the trend persists, the full-year 2026 net flow could turn negative for the first time since the product category launched.
Friday, May 22, saw daily outflows cross the $100 million mark again, reaching $105.2 million. BlackRock's iShares Bitcoin Trust (IBIT) bled $68.9 million, while Fidelity's Wise Origin Bitcoin Fund (FBTC) lost $36.3 million. Other spot Bitcoin ETFs recorded no significant movements that day.
Six-Day Outflow Streak: $1.55B Gone, 2026 Inflows Nearly Wiped Out
Since the last net inflow on May 14, spot Bitcoin ETFs have experienced six consecutive outflow days, draining a combined $1.55 billion. That has slashed year-to-2026 net inflows from over $2 billion at the start of the year to just $536 million. At the current average outflow pace of $100 million to $250 million per day, if no material inflows emerge in the coming days, the entire year could flip to net negative as soon as this week. That would mark a dramatic reversal from 2025's stunning $25 billion in net inflows.
U.S. spot Bitcoin ETFs remain a key barometer of institutional demand for crypto. The persistent outflows signal not only short-term risk aversion but potentially a broader asset-allocation shift among traditional financial firms amid macroeconomic uncertainty.
Institution Exodus: Jane Street Sheds 70%, Goldman Trims 10%
Behind the outflows, institutional moves are drawing attention. First-quarter 13F filings show market maker Jane Street slashed its Bitcoin ETF holdings by roughly 70%, while investment bank Goldman Sachs cut its position by about 10%.
Jane Street, one of the world's largest options market makers, is widely seen as taking a cautious stance on Bitcoin's near-term price. Goldman's reduction, though smaller, also carries weight given its status as a top global investment bank. Still, most net inflows into spot Bitcoin ETFs remain concentrated in IBIT alone: BlackRock's fund has pulled in roughly $2.7 billion year-to-date, but that pace is far behind 2025's $25 billion, and most peer products have already seen net outflows in 2026.
Morgan Stanley MSBT Defies Trend with $264M Inflow
Amid the broader gloom, one bright spot stands out. Morgan Stanley's Bitcoin Trust ETF (MSBT), launched on April 8, has attracted $264 million in net inflows. In just two months, MSBT has surpassed products from Invesco and WisdomTree that debuted in January 2024, underscoring the power of a major bank's brand in the ETF space. Part of MSBT's success stems from its rock-bottom 0.14% expense ratio, the lowest in the market, which provides a key competitive edge. Analysts say the low-fee strategy could intensify peer competition and even deter future product launches.
Truth Social Crypto ETF Dream Dashed: Trump-Linked Filing Withdrawn
Separately, hopes for a Truth Social-linked crypto ETF have fizzled. Asset manager Yorkville America last Tuesday withdrew multiple crypto ETF applications tied to Trump Media & Technology Group. Bloomberg ETF analyst James Seyffart speculated that the withdrawal may stem from the competitive landscape, particularly MSBT's ultra-low 0.14% fee, making it tough for new entrants to compete on price. The episode highlights the increasingly fierce rivalry in the spot Bitcoin ETF market, where products compete not just on content but also on fee structure and brand trust.